The Serbian government acquired 16.42% of Air Serbia’s shares still held by Etihad Airways, thereby gaining full control of the company.
Etihad had managed to obtain up to 49% of the stake in Air Serbia, which later fell to 18% in 2020 and 16% in 2022, as the government advanced in a modernization plan and financial restructuring of the airline. Throughout this time, Etihad was relegated to the role of an investor, but without participation in the management of Air Serbia. Last year, they even concluded the code-share agreement they had maintained.
«Air Serbia is the largest airline in the region. From a company facing bankruptcy, we have created a leading company that now flies to four continents and a significant number of domestic markets. It has become an example of how an airline can be successful and contribute even more to economic growth,» said Siniša Mali, Serbian Minister of Finance.
«The State will focus on the continued development of our Air Serbia, which includes the acquisition of wide-body aircraft and the launch of new routes. I would like to thank the officials at Etihad Airways, who have been partners and co-owners of Air Serbia since 2013. They are leaving Air Serbia due to their own business decisions, while we continue to develop our airline,» added Mali.
For his part, Air Serbia CEO Jiri Marek, said that «Etihad Airways is a minority shareholder, but does not participate in the management of the company. We are not currently looking for a strategic partner. Of course, I cannot make comments on behalf of the shareholders, they might have a different view. As an airline, our strategy is to cooperate with everyone with whom we can and makes sense.»
Air Serbia is expected to reach four million passengers this year, recording a net profit of 22.4 million euros during the first half. The company launched 23 new routes in 2023 and stated that in the coming years it will focus on expanding long-haul flights.
Air Serbia still continues to use Etihad’s frequent flyer program: Etihad Guest, which it expects to leave in 2024.
«We are evaluating many options. We are assessing joining Miles and Smiles of Turkish Airlines and also the program offered by Air France – KLM. For the moment, we are leaning more towards developing our own program, although we have many other priority projects in the pipeline, so we believe that in 2024 we will have some solution, but we lean towards development», pointed out Marek.
Etihad’s Failed Investments
The Emirati airline has participated in the capitals of numerous airlines over the years, leading to significant losses. Air Serbia is the last airline from which Etihad has divested.
Over the years, Etihad has invested in the shareholding of: Aer Lingus, Alitalia, Air Berlin, Darwin Airline, Jet Airways, Air Seychelles, and Virgin Australia. All of these have not yielded positive results and, consequently, they decided to abandon them.
